Chetan Padm (law) 29 August 2010

Forced Resignation and non settlement of dues

Hi,

I worked in a MNC bank for 1.5 years as a confirmed employee.

My performance was good and also received bonus during the global recession as per my performance and also got confirmed after 1 year of service.

After 1.5 years of service end of Dec I was asked to resign stating that your position is not funded by US and hence you have to resign or we shall terminate your employement.

I choose to resign and company asked my to resign with back dated letter which was 2.5 months back from the date of resignation.

I agreed to have to co-operate with them being confident of getting another job.

On the exit date, it was a smooth exit and I was given copy of exit letter signed by HR.

One mistake they did with my resignation acceptance letter was that they mentioend current date ( actual date on which I resigned) instead of 2.5 months back date.

After they releasied their mistake started calling me to return the letter bcos they were saving on my 2 months notice salary and year end bonus amount.

Later they started giving wrong feedback to my reference check calls and as such I remained unemployeed for 6 months.

They have not given my releiving letter, Form-16, full and final settlement account copy how ever they transfered some amount to my account (not sure how calculation was made).

I followed up with them to give my Form16 atleast but they are adament that till I return them the Resignation acceptance letter they will not give my Form 16 and releiving letter.

I was unable to file my ITR for AY 2010-2011 this year. I rasised the complaint with Income Tax Department about this and following up with RTI to get them procecuted.

PLease advice:

1. Since they have not issued my releiving letter and as such not releived me from my duties I'm assumed to be their employee and as such liable to get the full salary till I'm not released ?

2. I should get 2 month notice salary from actual date of resignation + year end bonus amount ?

3. Since they pressurised me to resigned from back date and date on resignation letter was forces to changed from Dec to Oct are they liable to be procecuted in any criminal IPC ? If yes what ? 406 IPC ?

4. WHat is the process of recovery of my 6 months salary + notice salary + harassment ?

Please advice.

thanks,

chetan

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6 Replies

G. ARAVINTHAN (Legal Consultant / Solicitor) 29 August 2010

what i suggest you is to send a detailed notice to the company

Ashok. B.V. (Executive-Legal) 31 August 2010

Mr. Chetan,

I am not going to give the answer in detail. in short the following are the legal solutions to recover the salary and other benifits

1. Legal Notice to the Company asking the arrears of salary & other benifits

2. To lodge the complaint in local police station under section 420 IPC ( cheating )

3. some time the police may not register the complaint in such circumstances to file the complaint before the magistrarte under section 200Cr.pC with an allegation harasement in worjing place ( this method is more effective because under the guise of criminal proceedings you have to threat the company to recover the same )

thanks

Venkatnarayanan (M.A) 25 September 2010

Always victims would expect bona fide answers rather than assume, guess and presume answer, at least we will have to give exhaustive answer, one of the unmatured member assuming that complaint can be lodged in the Police Station under section 420, which cannot be made under the law, it not comes under the ambit of IPC, it cannot be say that cheating, no complaint shall be entertained by Police Officers between Employee and Employer disputes, the left option is that sending a legal notice and file a recovery suit under the CPC OR Under Labour Court. And you cannot simple file a criminal complaint under section 200 of Cr,pc, no Magistrates would entertain such complaints. The legal term is here that ‘BREACH OF TRUST”. Hi cheathen your Company has committed a breach of trust, better than the late, have length discussion with local advocate and send a strong notice by quoting all your claims. Don’t forget to refer Contract Act for breach of trust. Criminal proceedings should be dealt with accordance with the Act. The law comes to the aid of those who are diligent or sufferer not under the guise of criminal proceedings, as quoted by one of the unmatured member. Threat to the Company under the guise only for time being stratification and it would be academic and infreectuous.

I humbly request members to advise rightly without confusing.

Chetan Padm (law) 25 September 2010

Thanks Vankat for sheding some light.

Labour court entertains case for salary upto 6500. So the option left is Recovery suit.

if my recovery of salary + damages + harrasment at General Manager Level i s 1 crore, do i need to pay advorelum fee on 1 Crore.

Some one suggested to file Suit for declaration for entitlement and then if its in your favour go for recovery.

I'm bit confused over the jurisdiction.

Eg. Company is in mumbai, with sister concern in Delhi. Parent company also provides support to sister concern's infractruture in Delhi. So as per CPC section 20(a) (b) jurisdiction is where company has its business that could be Mumbai or Delhi. correct me if I'm wrong.

I was in mumbai working for this company and after resignation moved to Delhi, with the trust that company will settle all my accounts in 30 days which they din't. After send reminders and call nothing happened.

Now people say local police station. question is local to whom. Local to me in Delhi or local to company in mumbai.

So now for 406 IPC jurisdiction is Delhi or mumbai ?

regards,

chetan

Venkatnarayanan (M.A) 27 September 2010

Hi Chetan, it would be best way to file a suit for declaration for “ENTITLEMENT” and then go for recovery. There will no hindrance to you to win this case. According to me in initial stage only you would get possible result.

Regarding your second doubt that: Jurisdiction to file a case: There is no doubt in this, case shall be initiated at Mumbai only, you cannot file at Delhi, as you were working in Mumbai, so cause of action arose at Mumbai, even for 406 of IPC...

Pls don';t leave this kind of companies to sleep, how they harrsed you, file a suit without durther delay. In future also I would help you to receover your doubts..